Nike Stock Slumps as BofA Downgrades Shares Amid Sales Growth Concerns

Nike's stock price has taken a hit after BofA Securities downgraded its shares to Underperform (equivalent to Sell) from Neutral, citing concerns over the sportswear giant's sales recovery.

The bank's analyst, Lorraine Hutchinson, stated that Nike's innovation is being overshadowed by a pressured classics business and that the company's sales growth is taking longer than expected.

BofA reduced its price target to $30 from $47, implying about 16.6% downside from Thursday's close of $35.99, which represents a significant decline in value for investors.

The downgrade comes ahead of Nike's Q1 earnings release on October 1 and has contributed to the stock's year-to-date decline of 42%, driven by growing competition, a weak Chinese market, and changes in consumer tastes.